An integrated report is intended to be a concise communication as to how a company creates value for itself and its stakeholders in the short, medium and long term. It should describe what the company does, its business model and strategies, its opportunities, risks and governance.
Public sector organisations, which include utilities, banks and industries, are in many countries the largest reporting entities. Since such organisations utilise public funds there have been increasing demands worldwide for them to demonstrate that they have been using their resources effectively and efficiently. Furthermore, today concerns about public sector organisations’ impact transcend narrow economic considerations. They are also expected to deliver their services in a socially and environmentally sustainable manner.
The key stakeholders of public sector enterprises include the Government, regulatory authorities, private enterprises from the largest to the smallest and the general public. The fact that enterprises are publicly-owned makes keeping the trust and confidence of stakeholders all the more important.
Integrated reporting in public sector organisations plays a supporting role in promoting sustainable development and financial stability which are major public concerns.
There has been widespread public skepticism about the commitment of public sector enterprises to sustainability, which the sector needs to overcome. Since state-owned organisations provide essential services such as power, water and finance to private enterprises, the efficient and transparent governance of such organisations is a major concern for the private sector too.
Since the Bank of Ceylon is the largest financial institution in the country it plays a vital role in the economy of the country. In recent times, there has been great public awareness regarding transparency and good governance in Sri Lanka. In this context, the Bank wishes to reassure its stakeholders that it is safeguarding the public interest.
The topics that this integrated report of the Bank captures are shown in the diagram below:
The capitals as defined in the International Integrated Reporting Framework and shown in the diagram below are covered in the report. However, some of the capitals may be described in the report under different headings.
In preparing this report, we have drawn on the following where applicable: Global Reporting Initiative Sustainability Reporting Guidelines GRI G4 (2013) [www.gloabalreporting.org], the International Integrated Reporting Framework (2013) [www.theiirc.org] and A Preparer’s Guide to Integrated Corporate Reporting of The Institute of Chartered Accountants of Sri Lanka.
In this report, performance and operations of the entire Group, covering Sri Lanka, India, Maldives, Seychelles and the United Kingdom vis a vis branch offices and subsidiaries are detailed. However, the larger amount of information relates to the Bank of Ceylon, which is the holding entity, as it is the BoC that contributes the most to the profitability of the Group.
Our reporting focuses on aspects that are material or important, based on the extent to which they may substantively affect the ability of the Bank to create value over the short, medium or long term. The materiality determination process is discussed under pages 330 to 331.
The Bank’s Annual Report 2016 covers the 12-month period from 1 January 2016 to 31 December 2016 and is consistent with our usual annual reporting cycle for financial and integrated reporting. The most recent previous report was dated 31 December 2015.
There have been no significant changes during the Reporting period regarding size or ownership.
The Bank applies a precautionary principle across the Group with regard to social and environmental sustainability. Before embarking on new ventures and initiatives we take necessary steps to assess any impacts through adequate risk management processes, which are discussed on pages 78 to 92.
There have been no restatements of information provided in the previous reports, other than changes in comparative information in order to conform to current year’s presentation explained under Note 59 of the Financial Statements. There have also been no significant changes from previous reporting periods in the scope and aspect boundaries.